August 5, 2020

Mitsui E&S Holdings Co., Ltd. and its Consolidated Subsidiaries

1st Quarter CONSOLIDATED FINANCIAL RESULTS FOR FY2020
From April 1, 2020 to June 30, 2020
Code number:

7003

Shares Listed:Tokyo Stock Exchange

Representative:

Ryoichi Oka, President, Representative Director, and CEO

Inquiries:

Kazunori Miyake, General Manager of Finance & Accounting Dept.
Tel: +81 3 3544 3121

URL:

https://www.mes.co.jp/

Scheduled date to file Quarterly securities report:

August 7, 2020

Scheduled date to commence dividend payments:－Supplementary explanatory materials prepared:

Yes

Explanatory meeting:Yes (for analysts)(Amounts less than one million yen are truncated)

1. Consolidated Financial Results for 1st Quarter FY2020 (From April 1, 2020 to June 30, 2020)(Millions of yen)
From Apr. 1, 2019
to Jun. 30, 2019

From Apr. 1, 2020
to Jun. 30, 2020

Change (%)

New Orders Received

102,614

252,816

146.4

Net Sales

160,136

160,779

0.4

Operating Income (Loss)

2,205(15,092)－

Ordinary Income (Loss)

3,979(13,903)－Profit (Loss) attributable to owners of parent

2,362(8,468)－Earnings per Share (Yen)

29.23(104.76)－Figures in parentheses represent negative.

(Millions of yen)
As of Mar. 31, 2020

As of Jun. 30, 2020

Total Assets

840,380

796,843

Net Assets

105,355

80,460

7.7%

6.1%

Shareholders’ Equity to Total Assets

Note: This consolidated financial results has been prepared in accordance with Japanese accounting standards and Japanese law.

-1-

2. Dividends(Yen)
FY2019FY2020(forecast)

FY2020

Annual dividends per shareFirst quarter－

Second quarter

0.00

Third quarter

－0.00

－－

Year-end

0.00

0.00

Total

0.00

0.00Note: Revision of the most recent dividends forecast: None

3. Forecast of Financial Results for FY2020

Year ending
March 31, 2021

(Millions of yen)

Net Sales

Operating Income

Ordinary Income

Profit attributable toowners of parent

Earnings per Share(Yen)

630,000(10,000)(7,000)00.00

Note: Revision of the most recent financial forecast: None
Reference: Estimate is based on exchange rate of USD1.00 = JPY110.0

4. Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in the change in scope of consolidation):None(2) Application of specific accounting for preparing the quarterly consolidated financial statements:

Yes(3) Changes in accounting policies, accounting estimates or restatementsi ) Changes due to amendment of accounting standards:

Noneii ) Changes due to other reasons:Noneiii ) Changes in accounting estimates:

Noneiv ) Restatements:

None(4) Number of shares outstanding (common stock)
FY2019 /FY2019 1Q

FY2020 1Q

sharesshares

Number of shares outstanding at the end of period (including treasury stock)

83,098,717

83,098,717

Number of treasury stock at the end of period

2,259,372

2,254,719

Average number of shares during the period (cumulative quarterly consolidated period)

80,831,338

80,843,474

NOTICE REGARDING QUARTERLY REVIEW PROCEDURES FOR THE QUARTERLY FINANCIAL RESULTS
This quarterly financial results statement is exempt from the quarterly review procedures based upon the Financial Instruments and Exchange Act. At
the time of disclosure of this quarterly financial results statement, the quarterly review procedure based upon the Financial Instruments and Exchange
Act has not been completed.
FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMSThe forecasts for financial results are based on information available at the time this report was released. These forecasts and other forward-looking
statements are not guarantees of future performance. Actual operating results may differ from the above forecasts due to known and unknown risks,
uncertainties, and other factors.
HOW TO GET THE SUPPLEMENTARY EXPLANATORY MATERIALSSupplementary explanatory material is planned to be posted on our web site.

-2-Overview of Reportable Segment
Reportable Segment is classified into 4 segments: Ship, Ocean Development, Machinery and Engineering. Main products and services of each Reportable
Segment are as follows.

Reportable Segment

Main Products and Services

Ship

Commercial ships, naval ships, high speed passenger/vehicle ferries, offshore structures, underwater TV
vehicles, steel structures

Ocean Development

FPSOs (floating production storage offloading vessels)

Machinery

Marine and stationary diesel engines, marine equipment, gas engines, steam turbines, blowers, process
compressors, gas turbines, cogeneration system, regulating system, container cranes, industrial cranes,
container terminal management systems, HWM manipulators, equipment of radar sensing for undergroundand construction, port structures, induction heaters

Engineering

Renewable energy power generation plants, power generation business, overseas civil works, waste treatment
plants, water treatment plants, resources recycling plants, PCB disposal plants

Change in Reportable Segment
The Company announced the Business Revival Plan in May 2019, reviewed a part of the plan in November 2019, and has been pushing forward the reformof business structure.
As part of this reform, jurisdiction over Mitsui E&S Steel Structures Engineering Co., Ltd. and DPS Bridge Works Co., Ltd., both were previouslyclassified as "Machinery" and carries on Bridge business, has been changed since this 1st quarter of FY2020, and the said two companies are now belong to"Others."
Comparative segment information for the prior period has been restated to reflect the changes.

-3-

(Millions of yen)

New Orders by Segment
From Apr. 1, 2019
to Jun. 30, 2019
Ship

From Apr. 1, 2020
to Jun. 30, 2020

9,240

17,294

Difference
8,053
87.2%

Ocean Development

12,118159,171

147,052-Machinery

52,66645,079(7,587)(14.4%)Engineering12,615

7,834(4,780)(37.9%)

Others15,97323,437

7,463
46.7%

Total

102,614

252,816150,202146.4%(Millions of yen)

Net Sales by Segment
From Apr. 1, 2019
to Jun. 30, 2019
Ship

From Apr. 1, 2020
to Jun. 30, 2020

23,02422,715Difference(308)(1.3%)

Ocean Development

58,19580,59022,394
38.5%

Machinery

39,75832,287(7,470)(18.8%)Engineering

15,911

8,185(7,726)(48.6%)

Others23,24617,000(6,246)(26.9%)

Total

160,136

160,779642
0.4%(Millions of yen)

Operating Income (Loss) by Segment
From Apr. 1, 2019
to Jun. 30, 2019
Ship

From Apr. 1, 2020
to Jun. 30, 2020

Difference(1,635)

(165)

1,470

236

(12,071)(12,308)

Machinery

1,160

512(647)

Engineering

1,192(3,486)(4,678)Others1,251

117(1,134)

Total

2,205

(15,092)(17,298)

Ocean Development

Figures in parentheses represent negative.

-4-

Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020
AssetsCurrent assets
Cash and time deposits
Trade receivables
Merchandise and finished goods
Work in progress
Raw materials and supplies
Short-term loans
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
LandOthers, net
Total property, plant and equipment
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of June 30, 2020

118,405
282,368
4,714
46,165
5,505
9,593
50,259(1,185)515,827

105,640
266,094
5,005
53,675
5,479
10,49947,824(907)
493,311

90,261
69,297
159,55974,360
65,718140,078

10,061
18,18028,242

9,922
19,28029,202

137,179(427)
136,751
324,552
840,380

134,727(476)
134,251
303,532
796,843

(Millions of yen)
As of March 31, 2020
Liabilities
Current liabilities
Trade payables
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds
Accrued income taxes
Advances from customers
Provision for construction warranties
Provision for losses on construction contracts
Provision for losses on liquidation ofsubsidiaries and affiliates
Provision for repairs
Other provisions
Asset retirement obligations
OthersTotal current liabilities
Long-term liabilities
Bonds
Long-term borrowings
Liability for severance and retirement benefits
for directors and corporate auditors
Provision for business restructuring
Other provisions
Net defined benefit liabilities
Asset retirement obligations
OthersTotal long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized holding gains (losses) onsecurities
Unrealized gains (losses) on hedging derivatives
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of June 30, 2020

238,241
34,67040,2455,000
7,803
83,983
11,38998,505

235,764
26,72034,4375,000
8,946
98,52811,08397,082-476

10,5739,086
1042,246
581,756

5,933
6,513
408
38,644
569,539

35,00059,01935,00052,102

23

14

3,374
1,878
11,685
1,794
40,492
153,267
735,024

3,381
2,288
12,667
2,542
38,846
146,843
716,383

44,384
18,486(18,676)(4,726)
39,46944,384
18,484(16,990)(4,715)
41,163(29)

148(10,275)
37,707(1,814)(680)
24,907175
40,802
105,355
840,380(15,701)
27,552(3,877)
(584)
7,538
168
31,59180,460796,843

Consolidated Statements of Operations(Millions of yen)
April 1, 2019 toJune 30, 2019
Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries
and affiliates accounted for using equity method
Foreign currency exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Commission expenses
Foreign currency exchange losses
Loss on valuation of derivatives
OthersTotal non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on disposal of non-current assets
Gain on sales of subsidiaries and affiliates' stocks
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on impairment of non-current assets
Loss on sales of subsidiaries and affiliates' stocks
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andaffiliates
Provision for losses on liquidation of subsidiaries
and affiliates
Business restructuring cost
Retirement benefit expenses
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent-7-April 1, 2020 toJune 30, 2020160,136
144,752
15,384
13,1782,205

160,779
165,081(4,301)
10,791(15,092)

1,666
478

1,305
129

1,140

557

512
3,797

212
510
2,714

723
15
126
818
339
2,023
3,979

709
231
305
278
1,525
(13,903)

9
9

14
2,342
2,357

13
60
310-

780
836
180

43-

-

476

426
3,562
1,283
2,278
(84)
2,362

67
818
3,158
(14,705)(807)(13,897)(5,429)(8,468)

Consolidated Statements of Comprehensive Income(Millions of yen)
April 1, 2019 toJune 30, 2019
Profit (loss)
Other comprehensive income
Net unrealized holding gains (losses) on securities
Unrealized gains (losses) on hedging derivatives
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for using equity method
Total
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests-8-April 1, 2020 toJune 30, 2020
2,278

(13,897)

(804)
(156)
(979)
128

177
30
(2,873)
109(2,034)(6,895)(3,846)(1,568)(9,451)(23,349)(1,087)(480)(15,683)(7,665)